**JULY**
Lenin's copy.

Resolution of the Presidium of the SCNE from 11/VII-21.

1. The acute crisis of our national economy, which we entered in May, is a consequence in the first place of the grave food supply situation. Simultaneously with this, we encounter a series of phenomena, without the elimination of which the Soviet Republic will not be able to cope either with the problem of developing productive forces or to withstand the struggle against hunger; the meaning of these phenomena consists in the lag of our economic policy behind the new economic course which was proclaimed at the Tenth Party Congress and at the spring party conference. The emerging deterioration of our economic situation (the fall in productivity of the Donbas, metallurgical industry, etc.) demands the decisive acceleration of the transition to this new economic policy. Otherwise we shall be forced to do this several months later under qualitatively worsened conditions.

2. One of the basic defects of the present economic policy is the absence of an economic subject, [and] as a consequence [of this], rational management of industry. This manifests itself in the first place in the sphere of supply. Food supply is obtained: a) through ration cards and norms of the Commissariat of Food Supply, b) through theft from factories and enterprises, c) as a result of payment in kind through cooperatives, d) as a result of the realization of payment-in-kind fund by the enterprise itself or by workers. Industrial and special clothing is distributed by the Trade Unions; technical and material supply comes from the Glavki [Main Administrations]. Enterprises are supplied with food and industrial and special clothing not according to productivity, but according to need. That is, the connection between supply and productivity is established not directly, but indirectly. (Production increases, decreases, supply remains approximately the same.) This system was a consequence of the military period of our revolution, when the Republic was a military camp. In a besieged fortress it was completely understandable to strive to supply everyone as equally as possible, to feed, to sustain, while it was impossible to undertake the restoration of production. Now the task is different; it is necessary at all costs to restore production, to achieve the development of productive forces.

3. A direct consequence of this is the complete diffuseness of our economic management. We squander a mass of food and other resources with negligible productive effect — unproductively, wastefully. This inevitably must lead us to defeat on the economic front, if we do not quickly and decisively reorganize ourselves in accordance with the new conditions.

4. It is necessary now immediately to reorganize on the following bases: in the first place, it is necessary to establish, as a principle, that in the sphere of national economy the state gives nothing to anyone for free. In the second place, that all supply of the worker enters into his wages, which for that part that remains must be lowered significantly and brought closer to the average subsistence